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Life and the Sharing Economy

The rise of social media, smartphones and the overall interconnectivity of a globalized world are sweeping away conventional trade relations. While the term “Sharing Economy” is new to many, the idea behind the concept is pretty simple: it’s a system of sharing, of people renting things from one another with the help of technology. Although the term is relatively new, the impact the “sharing economy” is having in the world economy is increasing at a fast pace. The sharing economy is already leaving billions of dollars in revenues and has become a huge game changer for governments, citizens and businesses alike.

Companies like Airbnb or Uber, have found ways to market, share, and profit from people’s personal belongings. Through the sharing economy, a single commodity like a car or bike can be shared multiple times by multiple individuals. Whether one’s own house, apartment, car or even clothes, the sharing economy has allowed ordinary people to connect with one another and use their property as a micro-business.

Under the premise of “sharing”, more and more people have started to find a new ways to connect to others. Individuals are increasingly recognizing the potential they have in their own hands to profit from the things they owe, starting from cars to home appliances, cameras or furniture . In the case of companies like Airbnb (a company that matches home owners with travelers all over the world), the success of the company -as well as many others in the sharing economy realm-, is based on its ability to promote a “peer-to-peer” marketplace that has revolutionized the relationship between people, property and technology. The business model behind these companies is based on a single, but rather persuasive element: the creation of digital platforms that enable its users to engage and directly take part in this “sharing culture”.

Without a doubt, the sharing economy is slowly redefining what it means to own as well as to consume. However, despite the economic gains and its overall success, it is perhaps now valid to ask: could it be that at some point we might not be able to distinguish the fine line between our life and economics? could we become so obsessed with this “sharing” idea that we might transform our lives into a never-ending search for opportunities to profit?

When proposing the question of whether or not our lives could become intertwined with economics, we are not talking about the every day life economic exchanges that are natural to all human beings such as trading, starting a business, etc ; on the contrary, we are discussing the possibility that this new trend could permeate into the social fabric and embed itself in an apparently harmless way into our every day lives.

On one hand, there are those who argue that the sharing economy will eventually become a threat to our societies as it will en up setting price tags and market value to our assets, possessions, and ultimately to our very own lives. On the other hand, there are those who refute this possibility and argue that on the contrary, the sharing or collaborative economy actually reinforces communities, is an alternative to unemployment and economic recessions, has a positive impact on the environment, among others.

Thus, the answer to this question is that there is indeed a new and closer relationship between our lives and the world economy; however this should not be taken as “the new big threat” or anything the like. On the contrary, it should be seen as a new dimension of our highly interconnected and globalized world. Yet, like anything new, it is worth taking the time to explore and learn more about these and other issues that might result from this new economic trend, and eventually debate its possible effects on our societies.

For now, the good news is that the sharing economy does have a great potential for incubating businesses, engaging communities, democratizing markets, slowing down consumerism, and empowering citizens in the economic and potentially the political realms. Our task now becomes remaining vigilant on the path the sharing or collaborative economy might take in the future. Only time will tell whether this is just a trend or the “next big thing” in the wake of becoming a giant. In the meantime, however, let us hope that we are able to separate our real lives from markets and economics just so we don’t find ourselves surrounded by a world and a life solely responsive to the sound of economic exchanges, commodities and profit.

3 thoughts on “Life and the Sharing Economy”

Reblogged this on Dystopian Economics and commented:
Interesting concept in Sharing Economics. I can certainly see the strength in it’s microeconomics and I certainly agree that this would promote an interactive community and start the reverse of the isolated community.

“On one hand, there are those who argue that the sharing economy will eventually become a threat to our societies as it will en up setting price tags and market value to our assets, possessions, and ultimately to our very own lives.” I fear that these people might be right, though I certainly hope not. And these arrangements are not simply peer-to-peer, they are businesses, with shareholders. Like the international garment industry you wrote about in another post, they aren’t regulated, either, which could put people in individual danger, or threaten already existing businesses, a bit like WalMart does. Taxi drivers have to pass exams, know their city, buy a permit; presumably they have insurance and they don’t have a criminal record. What do you know about your Uber driver? As for AirBnB, renting out an extra room is one thing, but some people are renting out multiple apartments, which takes them off the market for long-term tenants, and thereby distorts the housing market. A friend rents out some places via AirBnB, shes’s beginning to wonder if it’s really worth the commitment.